NTPC plans to raise ₹500 cr through NCDs via private placement

State-run power giant NTPC on Wednesday said that the company plans to raise ₹500 crore through the issuance of unsecured, non-convertible debentures on a private placement.

The company said that the bonds will be issued at a coupon rate of 7.44 per cent p.a. with a maturity of 10 years 3 months.

“NTPC has decided to issue unsecured non-convertible debentures of Rs.500 crore on 16.12.2022, through private placement at a coupon of 7.44% p.a. with a door to door maturity of 10 years 3 months 30 days on 15.04.2033,” NTPC said in a regulatory filing.

The proceeds will be utilized for funding of capital expenditure, refinancing of existing loans and other general corporate purposes. The debentures are proposed to be listed on BSE.

“These debentures are being issued under the recommendation of board resolution dated 29.07.2022 and subsequent approval obtained through shareholders’ resolution dated 30.08.2022,” the regulatory filing stated.

This is the first issue of debentures under the mentioned approval, the filing stated.

NTPC registered over 5.5% growth in standalone net profit to ₹3,331.20 crore for the quarter ending September 30, 2022 (Q2FY23) compared to a PAT of ₹3,156.74 crore in the same quarter of FY22. However, Q2 PAT declined by 10.4% from ₹3,716.96 crore in the preceding quarter.

Standalone revenue from operations stood at ₹41,015.14 crore in Q2FY23 rising by 39.17% from ₹29,471.16 crore in the corresponding period of the previous fiscal. In Q1FY23, NTPC registered a revenue of ₹40,026.25 crore. Sequentially, revenue rose by 2.5% in Q2FY23.

The company’s scrip was up by 1.36 per cent at ₹171.50 on BSE